Retail Sector To Maintain Growth Pace At 3.5 Pct In 2017

KUALA LUMPUR, Nov 24 (Bernama) -- The Malaysian retail industry's expansion next year is expected to be at the similar rate of last year at 3.5 per cent due to softer consumer sentiment, the Malaysia Retail Chain Association (MRCA) said. Its president, Garry Chua said the MRCA was optimistic that the growth in the last quarter of this year would reach between five and seven per cent, mainly driven by the year-end festive season. "The growth in the last quarter is likely to hit five to seven per cent, which could help spur this year's growth," he told a press conference to announce next year's Malaysia International Retail and Franchise Fair (MIRF) 2017, here Thursday. Chua said as the sector's performance in the first nine months of this year remained sluggish, the growth rate would be slightly lower than the country's gross domestic product (GDP) growth. He believes industry players will carry out more promotional activities as consumers tend to buy products which give maximum value for money. In April, the MRCA forecast that the retail sector would register a five per cent growth in tandem with GDP. On the weakening ringgit, Chua said it would help boost the retail sector as it would benefit from the multiplier effect of the growing tourism industry. "When tourists, especially those from China spend, the money injected (into the economy) is faster than foreign direct investment," he said. MRCA vice-president Liew Bin encourages local retailers to tap into the online marketplace to expand their revenue. "With the growing number of online shoppers in the country, I believe the online retail sector will see a double-digit growth next year," he said. On the MIRF 2017, which will be held at the Mid Valley Exhibition Centre from July 13 to 16 next year, Chua expects it would generate sales of between US$13.63 million (RM60 million) to US$15.9 million (RM70 million), up from the US$11.36 million (RM50 million) at the MIRF 2016. (US$1 = RM4.40) "With 270 exhibition booths up for grabs against this year's 230 booths, and more international exhibitors expected from ASEAN, China and Taiwan, we expect it will draw 20,000 visitors compared with 15,000 this year," he said. Organised by the MRCA, the exhibition themed "Unleashing Borderless Business Opportunity" provides a platform to local brands to expand abroad. -- BERNAMA